China Moves to Revive Its Sway in Myanmar

Workers lay bricks at the top edge of the new dam project in Kyauk Phyu, Myanmar on February 18, 2016.

Lauren DeCicca for The Wall Street Journal

China is trying to rekindle its influence in Myanmar by building a deep-water port here, presenting an early test for the incoming government led by Aung San Suu Kyi in balancing local objections against ties with the country’s top economic partner. As WSJ's Shibani Mahtani reports:

The project, which includes a special economic zone, would help Beijing’s effort to extend its presence in the Indian Ocean and in South Asia and restore the privileged position it once enjoyed under Myanmar’s former military junta.

But the initiative is in doubt because Ms. Suu Kyi’s party, which picks a president in March and takes power in April, says it will review big previously awarded projects, including this one made in December to a Chinese-led consortium. The new administration must weigh significant anti-Chinese sentiment in Myanmar and local opposition to the project against the risk of alienating its powerful northern neighbor.